16 October 2012 15:12 [Source: ICIS news]
LONDON (ICIS)--Epoxy resins market players expressed concern over the recent force majeure at Momentive and are worried supply will become problematic for several weeks, sources said on Tuesday.
US-based producer Momentive declared force majeure on its 100,000 tonne/year liquid epoxy resins (LER) plant in Pernis, the Netherlands, on 10 October following a small explosion.
"Everybody is looking for trucks [of epoxy resins] now, buyers have become desperate," a central European producer said.
This is the second time in less than a month that Momentive has had to shut down unexpectedly because of technical difficulties. In September, the company planned to initially shut down the same plant for 12 days, however, because of a technical glitch the shutdown lasted nearly three weeks.
"We have a backlog of orders. Current expectation is that we shall be running again from Saturday," a company source said.
Sources in the industry said that because of the backlog at Momentive and an upcoming shutdown by US producer Dow in November, the market could remain tight until mid-December.
Dow is expected to shut down its 70,000 tonne/year epoxy resins plant in Stade, Germany, for two weeks of planned maintenance and to start up its new 30,000 tonne/year line.
As a result of the tightness, spot LER prices have increased by about €80-100/tonne ($104-130/tonne) and some suppliers are selling at €2,500-2,600/tonne free delivered (FD) northwest Europe (NWE).
($1 = €0.77)
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